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The Impacts of Oil Price Fluctuations on Revealed Comparative Advantage of Manufacturing Commodities for ASEAN-5 Economies

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  • Mukhriz Izraf Azman Aziz

    (Department of Economics, School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia)

  • Jauhari Dahalan

    (Department of Economics, School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia.)

Abstract

This paper attempts to quantify the effects of oil price fluctuations on revealed symmetric comparative advantage (RSCA) for 95 manufacturing commodities of 5 ASEAN countries from 1991 to 2012. Using Zellner s (1962) seemingly unrelated regression model, oil price fluctuations negatively affect RSCA of more than 60% of the manufacturing commodities estimated. This is true especially for low-technology (LT1 and LT2) and mediumtechnology (MT3) commodities. The paper also found that endowment variables such as labour and capital stock significantly affects RSCA for more than 50% of the equations, giving support to Ricardian and Heckscher-Ohlin theorem of comparative advantage.

Suggested Citation

  • Mukhriz Izraf Azman Aziz & Jauhari Dahalan, 2015. "The Impacts of Oil Price Fluctuations on Revealed Comparative Advantage of Manufacturing Commodities for ASEAN-5 Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1098-1108.
    • Handle: RePEc:eco:journ2:2015-04-23
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    More about this item

    Keywords

    Revealed Comparative Advantage; Oil Price Shocks; International Trade;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

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